Zorin Finance secures £200m of funding with Avenue Capital
Alternative property lending specialist Zorin Finance has signed an agreement with global investment firm Avenue Capital Group to fund up to £200m of property development and investment loans for the UK small to medium enterprise (SME) housebuilder market.
The business is now funded by two institutional investors, with Avenue being granted exclusivity to fund up to 80% of Zorin’s future deal flow.
Founder and CEO Luke Townsend and Sir John Beckwith and family will continue to personally fund a percentage of every loan the company makes.
Zorin, which has funded the development of over 3,000 new homes without capital losses, aims to use the funding to provide financial support to UK SME housebuilders, which it believes have been neglected by high street banks and other alternative lenders during the pandemic.
Luke Townsend, CEO and founder of Zorin Finance, said: “Securing a new funding partner of this calibre, especially in these unprecedented times, is a testament to the strength of the company and its employees and the confidence Avenue Capital has in our business.
“Their experience in this sector will add to all aspects of our business: not least by taking a customer focused, pragmatic approach to lending but also by offering long-term certainty of funding to our borrowers.
“Whilst the near-term economic outlook is uncertain, demand for development finance remains buoyant as SME housebuilders look to satisfy continued demand for new housing.
“We believe opportunities will present themselves as the fallout from the pandemic starts to hit the balance sheets of high street banks and less well capitalised alternative lenders.”